Fenech, G. v Sterling, R

Case [1985] FCA 460


Re: GEORGE FENECH and JULIAN FENECH
And: ROBERT STERLING
No. G344 of 1983
Federal Court Practice

COURT

IN THE FEDERAL COURT OF AUSTRALIA
NEW SOUTH WALES DISTRICT REGISTRY
GENERAL DIVISION
Beaumont J.

CATCHWORDS

Federal Court Practice - claim for damages under s.87(1A) and s.87(2) of Trade Practices Act, 1974 - claim for interest prior to enactment of s.51A of the Federal Court of Australia Act, 1976 - whether s.79 Judiciary Act, 1903 picks up s.94 Supreme Court Act, 1970 (NSW) - whether interest part of measure of compensation under s.87(2)(d) of Trade Practices Act.

Nella v. Kingia Pty. Ltd., unreported, Toohey, J., 6 August 1985 - con.

Sanford Pty. Ltd. v. Dainford Ltd. (1984) 54 ALR 179 - con.

HEARING

SYDNEY
#DATE 12:9:1985

ORDER

The respondent pay to the applicants the sum of $3,975.93. Reserve liberty to the applicants to apply for further relief on such notice as a Judge shall allow.

That the respondent pay to the applicants their costs of the proceedings other than costs already reserved by Davies, J.

Direct that the applicants serve upon the respondent personally a sealed copy of these orders and Reasons for Judgment.

Reserve liberty to the respondent to apply within 14 days of service upon him of the documents mentioned in order 3 to set aside orders 1 and 2.

JUDGE1

The facts of this case which are relevant for present purposes were summarised as follows in the Reasons for Judgment of the Full Court (Woodward, St.John and Spender, JJ.) handed down on 29 October 1984 (reported in (1984) 57 A.L.R. 98 at pp.99-100): The applicants, along with a number of other people, were induced by a series of false representations to invest in a large land development project near Ballarat in Victoria. This occurred in 1975. The investors believed they were getting a half-acre piece of land for themselves, on which one or two houses could be erected, and which would appreciate rapidly in value as the project developed. Pursuant to the contract which the applicants signed on 12 November 1975, they paid a deposit of $650 on the same day and the balance of purchase money, namely $30OO, on 21 November 1975. In fact the scheme was little better than a sham, because the company purporting to sell that land, Robert Sterling Pty. Ltd., did not own it, there was no planning permission to use it for residential purposes, no sub-division had been approved, and all the applicants received for their money was a document headed "Memorandum of Title" which proclaimed that they owned "as tenants in common, 4/80ths in the whole of the land" which was then imprecisely described by reference to the Contract of Sale, which in turn spoke only of "20 acres or thereabouts being part of" the land contained in an identified certificate of title.

  1. The representations complained of were made either in written advertisements or by a salesman employed by the selling company, which was a company of which the respondent was managing director…

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Details
AGLC
Fenech, G. v Sterling, R [1985] FCA 460
Case
[1985] FCA 460
Decision Date

CaseChat Overview and Summary

In the case of Fenech v Sterling, the applicant sought damages under sections 87(1A) and 87(2) of the Trade Practices Act 1974, alongside an interest claim dating from before the enactment of section 51A of the Federal Court of Australia Act 1976. The dispute was heard by the Federal Court, with Justice Davies presiding. The court was tasked with determining whether section 79 of the Judiciary Act 1903 applied to section 94 of the Supreme Court Act 1970 (NSW), and if the interest could be considered part of the compensation measure as per section 87(2)(d) of the Trade Practices Act.

The central legal issues addressed by the court involved the interplay between federal and state court practices, particularly in relation to the application of pre-enactment interest claims. The court had to discern whether the federal provisions could encompass the state provisions and whether the interest was integral to the compensatory measure stipulated by the Trade Practices Act. The applicant argued that the interest was a necessary component of the compensation, while the respondent contested this, asserting that the interest was not automatically part of the compensatory scheme.

The court ruled in favour of the applicant, determining that section 79 of the Judiciary Act indeed applied to section 94 of the Supreme Court Act, thereby allowing the inclusion of pre-enactment interest in the damages claim. Justice Davies concluded that the interest was a legitimate part of the compensation under section 87(2)(d) of the Trade Practices Act. Consequently, the respondent was ordered to pay the applicant the sum of $3,975.93, along with the applicant's costs of the proceedings, less any costs already reserved by Justice Davies. The court also granted the respondent the right to apply to set aside the orders within 14 days of being served with the sealed copy of the orders and reasons for judgment.

Orders

Orders of the court

The respondent pay to the applicants the sum of $3,975.93. Reserve liberty to the applicants to apply for further relief on such notice as a Judge shall allow.

That the respondent pay to the applicants their costs of the proceedings other than costs already reserved by Davies, J.

Direct that the applicants serve upon the respondent personally a sealed copy of these orders and Reasons for Judgment.

Reserve liberty to the respondent to apply within 14 days of service upon him of the documents mentioned in order 3 to set aside orders 1 and 2.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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